News Release Details
SC orders status quo on new pricing policy of imported LNG
New Delhi 08-Aug-2007
The Supreme Court today ordered status quo for a week in the legal battle fought among petro giants over the new pricing policy of imported LNG. As a result, the Delhi high court and the Gujarat high court will continue to hear the petitions before them and the Supreme Court will decide whether they have to be transferred to high court or to itself. More significant, The Supreme Court will also decide next Tues-day whether to vacate the stay ordered by the Gujarat high court on the new pricing policy. The stay order has raised a hornet's nest among the petroleum firms. The Centre, Petronet ING Ltd, Gail and some others have moved to' the Supreme Court for transfer of the cases from the high courts and also for vacation of the stay ordered by the Gujarat high court last Tuesday. The Gujarat high court, which is scheduled to resume the hearing on Thursday, had stayed the directive of the Petroleum ministry issued in March. According to the directive, LNG procured on a long-term basis would have to be sold on "a non-discriminatory basis and uniform pool prices should be charged from all consumers." It was feared that the new pricing policy would result in a hike of about 32 per cent for existing consumers, while the new consumers would be immensely benefited. Essar Steel therefore moved to the Delhi high court where its petition is being heard. The Gujarat State Petroleum Corporation Ltd moved to the Gujarat high court and got a stay of the government directive. According to the Gujarat high court, decision to charge pooled price and to make it applicable from August 1 appeared to be "unilateral". It further stated the contract provided that the seller may request revision of contract price in certain circumstances, but only if the seller incurred a change in the cost or expenses.
New Delhi 08-Aug-2007
The Supreme Court today ordered status quo for a week in the legal battle fought among petro giants over the new pricing policy of imported LNG. As a result, the Delhi high court and the Gujarat high court will continue to hear the petitions before them and the Supreme Court will decide whether they have to be transferred to high court or to itself. More significant, The Supreme Court will also decide next Tues-day whether to vacate the stay ordered by the Gujarat high court on the new pricing policy. The stay order has raised a hornet's nest among the petroleum firms. The Centre, Petronet ING Ltd, Gail and some others have moved to' the Supreme Court for transfer of the cases from the high courts and also for vacation of the stay ordered by the Gujarat high court last Tuesday. The Gujarat high court, which is scheduled to resume the hearing on Thursday, had stayed the directive of the Petroleum ministry issued in March. According to the directive, LNG procured on a long-term basis would have to be sold on "a non-discriminatory basis and uniform pool prices should be charged from all consumers." It was feared that the new pricing policy would result in a hike of about 32 per cent for existing consumers, while the new consumers would be immensely benefited. Essar Steel therefore moved to the Delhi high court where its petition is being heard. The Gujarat State Petroleum Corporation Ltd moved to the Gujarat high court and got a stay of the government directive. According to the Gujarat high court, decision to charge pooled price and to make it applicable from August 1 appeared to be "unilateral". It further stated the contract provided that the seller may request revision of contract price in certain circumstances, but only if the seller incurred a change in the cost or expenses.